Question

A college placement office wants to determine whether male and female economics graduates receive, on average, different salary offers for their first position after graduation. The placement officer randomly selected eight pairs of business graduates in such a sway that the qualifications, interests, and backgrounds of the members of any pair were as similar as possible. The data file Salary Pair contains the highest salary offer received by each sample member at the end of the recruiting round. Assume that the population distributions are normal. a. Calculate the difference for each pair. Then use Excel to get the printout of the descriptive statistics for the differences.

b. Use the descriptive statistics in part a to compute a 95% confidence interval for the population mean difference.

c. Use the descriptive statistics in part a to test the null hypothesis that the population means are equal against the alternative hypothesis that the true mean for males is higher than for females with the 5% significance level.

d. Use “t-Test: Paired Two Sample for Means” in Excel’s Data Analysis to get the printout for the test in part c.

e. Based on the Excel printout from part d, conduct a test on the hypothesis in part c with the p-value approach.

Answer 1